Coal Demand Set for Record High on Hormuz Trade Disruption
Created on
Last updated
The IEA's mid-year update projects record global coal demand this year as the Strait of Hormuz closure disrupts oil and gas trade routes, pushing several nations back toward coal to plug energy gaps.
Depleted oil inventories and elevated natural gas prices in 2026 are accelerating this fuel-switching trend, even as renewable capacity expansion continues in parallel across major economies.
The dynamic highlights how geopolitical chokepoints ripple across the broader commodities complex, lifting demand for alternative energy sources beyond the immediate crude and gas markets.